On the Optimality of Inventory and Shipment Decisions in a Joint Three Echelon Inventory Model with Finite Production Rate under Stock Dependent Demand

Alakan, Aadhavan; Nishanth, D.; Nagaraju, Dega; Narayanan, Swathi Jamjala; Devendiran, S.

doi:10.1016/j.promfg.2019.02.069

Cited by 2 publications

(2 citation statements)

References 24 publications

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“…Sebatjane and Adetunji (2022) also considered a coordinated multi-echelon system for a growing item inventory system with product expiration. Alakan et al (2019) proposed a three-level supply chain model to analyse the dynamics and interactions within an interconnected supply chain structure under finite production rates and stock dependent demand. Agi and Soni (2020) proposed a model that jointly optimizes the price and lot size for perishable products considering both physical deterioration and freshness degradation, where the demand is influenced by factors such as the product's age, the price and the stock level.…”

Section: Introductionmentioning

confidence: 99%

A Lot Sizing Model for a Deteriorating Product with Shifting Production Rates, Freshness, Price, and Stock-Dependent Demand with Price Discounting

Tshinangi,

Adetunji,

Yadavalli

2024

Int. j. math. eng. manag. sci.

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Many production systems need to be able to change the rate at which they manufacture products for various reasons, hence, the need to find the optimal lot size under these multiple levels of production. This research addresses the need for optimizing inventory in a system with a shifting production rate and other challenging product characteristics such as product deterioration with limited life span, and product demand that is dependent on the stock level, the state of freshness of the product, and the selling price. The product also needs to be discounted as it gets close to the expiry date in order to boost demand and prevent wastage beyond its life span. Our objective is to maximize profit by determining the optimal selling price and inventory cycle time by deriving the relevant equations for these decision variables. The Newton-Raphson method was used to numerically solve for the optimal values of these variables. Sensitivity analyses were performed to derive useful insights for managerial decision-making.

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Section: Introductionmentioning

confidence: 99%

A Lot Sizing Model for a Deteriorating Product with Shifting Production Rates, Freshness, Price, and Stock-Dependent Demand with Price Discounting

Tshinangi,

Adetunji,

Yadavalli

2024

Int. j. math. eng. manag. sci.

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“…However, there are carrying costs of holding and storing inventory over a period of time. To determine the right inventory levels to keep in key supply chain processes, companies must conduct proper analyses, supported by inventory management and control models, such as Economic Order Quantity (EOQ), ABC, XYZ, maximum, and minimum, among others [5][6][7][8].…”

Section: Introductionmentioning

confidence: 99%

A System Dynamics Model to Evaluate the Impact of Production Process Disruption on Order Shipping

et al. 2019

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Multiple studies have analyzed the importance of preventive maintenance. Similarly, they have developed and/or evaluated various spare part inventory management policies that help companies reduce the duration of production disruptions resulting from sudden mechanical failures. All of these studies assess the impact of mechanical failures on local aspects, such as idle times or management policies. However, they do not holistically evaluate how machine failures affect key performance indicators. To address this gap, we proposed a System Dynamics (SD) model to systemically analyze the impact of machine part failures on order shipping, a key performance indicator. Similarly, we assessed the impact of machine part failures on the levels of the company’s finished goods inventory. The research was conducted in a glass bottle manufacturing company. To increase order shipping as a performance indicator, we identified the key variables of the production process and conducted a sensitivity analysis of the variables. Our results indicate that it is possible to reach the company’s 98–100% complete delivery policy.

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On the Optimality of Inventory and Shipment Decisions in a Joint Three Echelon Inventory Model with Finite Production Rate under Stock Dependent Demand

Cited by 2 publications

References 24 publications

A Lot Sizing Model for a Deteriorating Product with Shifting Production Rates, Freshness, Price, and Stock-Dependent Demand with Price Discounting

A Lot Sizing Model for a Deteriorating Product with Shifting Production Rates, Freshness, Price, and Stock-Dependent Demand with Price Discounting

A System Dynamics Model to Evaluate the Impact of Production Process Disruption on Order Shipping

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